Earnings steady and outlook positive at Hyatt

31 October 2018 by
Earnings steady and outlook positive at Hyatt

Hyatt's earnings decreased slightly by 0.9% to $175m (£137m) according to its third quarter financial report, in which the company said its outlook for the rest of 2018 remains positive.

The company, which has more than 750 hotels worldwide, five in the UK including the Hyatt Regency Birmingham and the Andaz London Liverpool Street, reported a net income increase to $237m (£186m) due to the sale of a number of properties, while revenue per available room increased by 2.8%.

Management, franchise and other fees increased 7.6% to $133m (£104m), compared to the same period in 2017, driven by new hotels being added to the system, hotel conversions from owned to managed, and strong operating performance at existing hotels.

Due to the results, Hyatt announced it was upping its net income expectation from $680-729m (£533-571m) to approximately $726-771m (£569-604m), and reaffirmed that it expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be around $765-775m (£599-607m).

Mark S Hoplamazian, president and chief executive of Hyatt Hotels Corporation, said: "We reported another quarter of solid growth, led by a 9% increase in management and franchise fees and 5% revpar growth at our owned and leased hotels, both on a constant-currency basis. Our outlook for the remainder of 2018 remains positive, including comparable system-wide revpar growth of 3.5% at the mid-point of our full-year guidance range."

"We are continuing to execute our long-term growth strategy while returning meaningful capital to shareholders, enabled in part by our sell-down of real estate. Earlier this month, we announced plans to acquire Two Roads Hospitality, a high-end lifestyle hotel management company which we expect will expand the growth of our management and franchising business."

The company opened 12 hotels during the quarter and is on track to open approximately 60 hotels in the 2018 fiscal year.

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TagsHotels and Hyatt
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